Manchester property – is it the buy-to-let choice in the UK?

GoCompare confirms our forward view of Manchester

Six months ago, we asked if Manchester could be the property investment story of 2018. Now we know: it is. We wrote a series of articles detailing why we thought Manchester was the place to invest. In fact, we’ve been telling investors to buy residential investment property in Manchester for the best part of two years, since before we noted that Manchester property prices were growing faster than in any other regional UK city in March 2017.

Among many factors, our research showed how:

And that:

Remember, we said this months ago. Now, research by GoCompare has come to the same conclusions.

Manchester is the crown jewel in the UK property market

Why do you invest in buy-to-let property? Capital growth? Income? Protection from inflation? In a year when all the so-called experts have been negative about property investment, our investor clients have been satisfying their objectives. Those who have invested in residential property opportunities in Manchester have benefitted better than most.

GoCompare has found that average rental yields in Manchester are the highest in the UK, and average rental growth outstrips all other locations, too. Yes, in Manchester, investors are benefitting from:

  • Average rental yields of 5.55%
  • Average rental price growth of 5.76%

On top of this, over the last 12 months, property prices in Manchester have increased by 4% (home.co.uk).

To put this in context, had you invested in UK shares, you would be receiving:

  • Average dividend income of 4.1% (Morningstar, April 2018)
  • Dividend growth of 1.8% (Link Asset Services, April 2018)

And, in the last year, the FTSE 100 has increased in value by just 2.8%.

Manchester property investment outstrips UK shares

Comparing investment in Manchester property to investing in the FTSE 100, the approximate total returns are:

  • UK stock market = 6.9%
  • Manchester property = 9.55%

And, rental yield in Manchester is not only a third higher than dividend income on the FTSE 100, but it is also growing at more than three times the rate of dividend growth in the UK.

How did we uncover this hotspot before it became a hotspot?

There’s no doubt, Manchester is one of the UK’s top property hotspots. According to GoCompare, it is the best location for buy-to-let investment in the UK. This won’t surprise our investor clients. Our research processes and algorithms have been honed from decades of property investment experience. They are designed to spot tomorrow’s hotspots today.

Want to know how we do it? All you have to do is get in touch with one of the Gladfish team on +44 207 923 6100 and book your property investment strategy session. And when you get in touch, make sure you sign up for the Gladfish Newsletter to stay abreast of all the property investment news that matters. We give it to you straight. No BS. No hype. Often, before it becomes news!

Live with passion

Brett Alegre-Wood

About the Author

Brett has over 20 years experience in all facets of property, he owns various companies centred around property and is the driving force behind the education and training at Gladfish. His companies have sold over £850 million in UK and London property and he manages over 1200 properties through his estate agency chain. Today he shares his time between UK, Australia and Singapore. He is married to Arlene and together they have 4 kids.

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